Another Ethanol Plant Steps Up to Offer Consumers Serious Ethanol Discounts
May 29, 2013
Press Contact: Monte Shaw
Some Ethanol Plants Cut Out the Middleman to Pass RIN Savings on to Consumers
JOHNSTON, IA – The Iowa Renewable Fuels Association (IRFA) today announced that while Iowa gas prices are often hitting new highs, Iowans can turn to ethanol blends like E85 to save some of their hard-earned money.
E85 is being sold at attractive prices across the state, but in areas where ethanol producers are selling E85 directly to the retailer, consumers are seeing even greater discounts. Siouxland Energy and Livestock Cooperative (SELC), a 60 million gallon per year ethanol plant in Sioux Center, Iowa, is now offering E85, a fuel blend containing 85 percent ethanol and 15 percent gasoline, directly to retailers and is passing on the RIN value generated by blending ethanol.
According to OPIS, recent prices for E85 at Iowa terminals were about $2.69 per gallon, while SELC listed the price for their E85 at only $2.17 per gallon. Last week, Absolute Energy of St. Ansgar, Iowa announced the implementation of the same program.
“Here at Siouxland Energy, we’re passing on the RIN savings to the consumer, and it’s making for some very attractive E85 prices,” stated SELC Commodity Manager Tom Miller. “I think ethanol plants are growing tired of watching a middleman pocket the RIN value to the detriment of consumers. Our plant wants consumers to understand the real value of homegrown ethanol, so we’ve cut out the middleman and we’re selling E85 directly to retailers at a much greater discount.”
A RIN, or renewable identification number, is a free credit earned by the blender of ethanol that can then be sold on the open market to oil refiners, which use the credits to demonstrate compliance with the federal Renewable Fuel Standard (RFS).
Iowa is the leader in renewable fuels production. Iowa has 41 ethanol refineries capable of producing over 3.7 billion gallons annually, with one wet mill and two cellulosic ethanol facilities currently under construction. In addition, Iowa has 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually.
The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.